One of the world’s largest industrial thread manufacturer and a major players in the Americas textile crafts market Coats, will be entering FTSE 250. FTSE Russell, the global index provider, confirms that Coats has met the necessary standards and will enter the FTSE 250 with effect from Monday 19 June.
Being the third largest company in the world, Coats was established in the year 1935, which was a founding member of the FT 30 index. The company has undergone significant corporate change in recent years in order to help reach the strategic objective of entering the FTSE 250. It was initially owned by the Guinness Peat Group to listed status in February 2015.
In June 2016, the company delisted from both the Australian and New Zealand stock exchanges. This helped concentrate trading volumes on the UK market and also supported the repositioning of Coats as a UK headquartered, global industrial manufacturing business. In December 2016, the UK Pensions Regulator confirmed it would cease regulatory action for two pension’s schemes following Coats signing heads of terms with the Trustees. At present Coats announced its intention to return to the dividend list.
Other steps in the corporate transformation of Coats include the appointment of Rajiv Sharma as Group Chief Executive, January 2017; the appointment of Simon Boddie as Chief Financial Officer, July 2016; and the completion of three acquisitions. In May 2015, it acquired GSD, a UK based supplier of management solutions that analyze time, cost and production capability in the sewn products sector. In June 2016 it acquired Fast React Systems, which provides software solutions and expertise to improve the operational efficiency of manufacturers, sourcing companies and retailers in apparel and footwear sector.
Coats acquired Gotex in June 2016, a Spanish based company which designs and manufactures high performance fibres, yarns and tapes used in various sectors. These acquisitions have proved highly successful with the companies each outperforming their post-acquisition targets.
Rajiv Sharma, Group Chief Executive, Coats, commented on this saying that this is excellent news for the company’s employees, shareholders and customers and is the culmination of an intense period of corporate transformation. He thanks 19,000 employees for delivering strong operational results.